While market participants in Singapore and Mumbai were unanimous in pegging high crude price as the main risk to India’s economy, there were different views on the second major risks, according to the credit rating agency.

“When asked about the top risks facing the Indian economy, most of the respondents highlighted high oil prices as the top risk, while 30.3% of those in Singapore picked rising interest rates as the next top risk, and 23.1% of those in Mumbai picked domestic political risks as the second top risk,” stated a release by Moody’s quoting Joy Rankothge, a Moody’s Vice President and Senior Analyst.

In June 2018, Moody’s held its fourth Annual India Credit Conference in Mumbai and Singapore with its Indian affiliate ICRA Ltd, during which real-time polls were conducted on some of the most pressing credit issues facing India.

As per a release by Moody’s, nearly 175 people attended, representing more than 100 local and international financial institutions.

In both locations, most attendees said they believed that India would not meet the central government’s fiscal deficit target of 3.3% of GDP for the fiscal year ending March 2019, added the release.

Further, only 23.3% of the respondents in Singapore and 13.6% in Mumbai thought that the fiscal targets would be achieved, with 84.7% in Mumbai and 76.7% in Singapore expecting some fiscal slippage.

The audiences in both Singapore (85.7%) and Mumbai (93.6%) thought that the government’s bank recapitalization package is mostly insufficient to resolve solvency challenges, showed the poll responses.indu news